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https://help.tallysolutions.com/docs/te9rel49/Philippines/Type_of_Rates_philippines.htm

Type of Rates

 

The standard VAT rate is 12 percent. Certain goods and services are exempted from VAT (i.e., exempt without credit for input VAT), including medical, dental, and hospital services; educational services provided by private and government educational institutions; and educational services rendered by duly accredited private educational institutions.

Tax Rates

  1. For output tax - 0% or 12%

  2. For input tax

  • Normal - 0% or 12%

  • Transitional input tax rate - 8% or 10%

  • Presumptive input tax rate - 1-1/2%

Creditable VAT withheld by the Government and the licensee or lessee (3%, 6%, 8.5% and 10%).

Types of Purchases

  • Purchase of Capital Goods (Not exceeding P1 Million )

  • Purchase of Capital Goods (Exceeding P1 Million)

  • Domestic Purchases of Goods Other than Capital Goods

  • Importation of Goods Other than Capital Goods

  • Domestic Purchase of Services

  • Services Rendered by Non-Residents

  • Purchases Not Qualified for Input Tax

  • Others

Types of Sales

The term "sale or exchange of services" implies the performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration.

Zero-Rated Sale

It is a sale, barter or exchange of goods, properties or services that are subject to 0% VAT.

VAT Exempt Sales

It is a sale or lease of goods, properties and services that are not subject to output tax. The buyer cannot avail tax credit or input tax on such exempt sale.

Sales Subject to VAT

Normal sales by a VAT registered dealer to another VAT registered dealer or retailer.

Sales to Government

Sales made to the government.

Types of Returns

Monthly VAT Declaration

Tax Form

BIR Form 2550 M

Documents Required for filing returns

  1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form 2307), if applicable

  2. Duly approved Tax Debit Memo, if applicable

  3. Duly approved Tax Compliance Certificate, if applicable

  4. Previously filed return and proof of payment, for amended return

  5. Summary List of Sales (if quarterly total Sales/Receipts (net of VAT) exceeds PHP 2,500,000) with the following information:

  6. BIR-registered name of the buyer who is engaged in business/exercise of profession

  7. Taxpayer Identification Number (TIN) of the buyer (Only for sales that are subject to VAT)

  8. Exempt Sales

  9. Zero-Rated Sales

  10. Sales subject to VAT (exclusive of VAT)

  11. Output Tax (VAT on Sales)  

  1. Summary List of Purchases (if quarterly total purchases (net of VAT) exceeds PHP 1,000,000) with the following information:

  2. BIR-registered name of the seller/ supplier/ service provider

  3. Address of seller/ supplier/ service provider

  4. Taxpayer Identification Number (TIN) of seller/ supplier/ service provider

  5. Exempt purchases

  6. Zero-Rated purchases

  7. Purchases subject to VAT (exclusive of VAT) - on services

  8. Purchases subject to VAT (exclusive of VAT) - on capital goods

  9. Purchases subject to VAT (exclusive of VAT) - on goods other than capital goods

  10. Creditable Input Tax

  11. Non-creditable Input Tax

Note: Creditable and non-creditable input taxes are to be computed not on per supplier basis, but on per month basis.

  1. The Quarterly Summary List of Importation with the following information:

  2. Import Entry Declaration

  3. Assessment/ Release Date

  4. Date of Importation

  5. Name of the Seller

  6. Country of Origin

  7. Dutiable Value

  8. All Charges Before Release from Customs Custody

  9. Landed Cost

  10. Exempt

  11. Taxable (Subject to VAT)

  12. VAT Paid

  13. Official Receipt (OR) Number of the Official Receipt evidencing payment of tax

  14. Date of VAT payment

Quarterly VAT Declaration

Tax Form

BIR Form 2550 Q

Documents Required for Filing Returns

  1. Duly issued Certificate of Creditable VAT Withheld at Source (BIR Form 2307), if applicable

  2. Duly approved Tax Debit Memo, if applicable

  3. Duly approved Tax Compliance Certificate, if applicable

  4. Previously filed return and proof of payment, for amended return

  5. Summary List of Sales (if quarterly total Sales/Receipts (net of VAT) exceeds PHP 2,500,000) with the following information:

  • BIR-registered name of the buyer who is engaged in business/exercise of profession

  • Taxpayer Identification Number (TIN) of the buyer (Only for sales that are subject to VAT)

  • Exempt Sales

  • Zero-Rated Sales

  • Sales subject to VAT (exclusive of VAT)

  • Output Tax (VAT on Sales)  

  1. Summary List of Purchases (if quarterly total purchases (net of VAT) exceeds PHP 1,000,000) with the following information:

  • BIR-registered name of the seller/ supplier/ service provider

  • Address of seller/ supplier/ service provider

  • Taxpayer Identification Number (TIN) of seller/ supplier/ service provider

  • Exempt purchases

  • Zero-Rated purchases

  • Purchases subject to VAT (exclusive of VAT) - on services

  • Purchases subject to VAT (exclusive of VAT) - on capital goods

  • Purchases subject to VAT (exclusive of VAT) - on goods other than capital goods

  • Creditable Input Tax

  • Non-creditable Input Tax

Note: Creditable and non-creditable input taxes are to be computed not on per supplier basis, but on per month basis.

  1. The Quarterly Summary List of Importation with the following information:

  • Import Entry Declaration

  • Assessment/ Release Date

  • Date of Importation

  • Name of the Seller

  • Country of Origin

  • Dutiable Value

  • All Charges Before Release from Customs Custody

  • Landed Cost

  • Exempt

  • Taxable (Subject to VAT)

  • VAT Paid

  • Official Receipt (OR) Number of the Official Receipt evidencing payment of tax

  • Date of VAT payment

 

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